Economics 511

Economics 414--Econometrics

Undergraduate course. Introduction to econometrics.

News

I will send news and updates to interested students. If you want to be

included, please send me an e-mail message.

The midterm is on Wednesday, October 12, 10-11.50am. Final is on Monday,

December 12, 8-10am. You can bring the formula sheet for the final (link is below) and a calculator.

You can write on the formula sheet. Statistical tables, if needed, will be provided.

The lab sessions are on Sept 14, 28, Oct 26, Nov 9, 23. Starting Sept 14 they will

be in KAP327, 10.10-11.50am.

I am aware the many of you cannot make it to the lab session on Wednesday,

November 23. The TA will prepare a hand-out that will be posted that day and that

will be helpful in doing the final assignment. If there are still questions

send us an e-mail with your concerns. We will try to answer quickly. <Handout>

Wednesday, November 30 is a review session. I will discuss the practice final and

answer any remaining questions. On Monday December 5 I will have office hours

1-2.30pm. This will be the last office hours.

Syllabus

Office hours

Geert Ridder, KAP 310A, Mo and Wed 4.30-5.30 pm, or by appointment

e-mail: ridder@usc.edu

TA: Voraprapa Nakavachara

Transparancies and readings in Gujarati

<PDF Copy of lecture 1> Gujarati, Chapter 1

<PDF Copy of lecture 2> Gujarati, Chapters 2-3

<PDF Copy of lecture 3> Gujarati, Chapter 3

<PDF Copy of lecture 4> Gujarati, Chapters 3-4

<PDF Copy of lecture 5> Gujarati, Chapter 3-4

<PDF Copy of lecture 6> Gujarati, Chapter 3-4

<PDF Copy of lecture 7> Gujarati, Chapter 4-5

<PDF Copy of lecture 8> Gujarati, Chapter 4-5

<PDF Copy of lecture 9> Gujarati, Chapter 7

<PDF Copy of lecture 10> Gujarati, Chapter 8

<PDF Copy of lecture 11> Gujarati, Chapter 10

<PDF Copy of lecture 12> Gujarati, Chapter 6

<PDF Copy of lecture 13> Gujarati, Chapter 9

<PDF Copy of lecture 15> Gujarati, Chapter 9

<PDF Copy of lecture 16> Gujarati, Chapter 11

<PDF Copy of lecture 17> Gujarati, Chapter 11-12

<PDF Copy of lecture 18> Gujarati, Chapter 12

Problem sets

Please make sure that you can run Eviews on your PC or laptop. If you do not have

Eviews or have problems installing it, let us know. You may use other software, but

we cannot support it.

The only really safe place to hand in your homework is in the classroom. We cannot

guarantee that homework left at other locations will reach us.

Assignment 1 (due Wed Sept 7) Use Eviews (or other program) to do calculations if

required. Do problem 1.6 where you may concentrate on the effect of Social

Security on household labor earnings. Do also problem 1.7. The data are <here>.

Additional questions: Compute the OLS regression coefficients in the

relation between Impressions (dependent variable) and Expenditure (independent

variable). Also compute R2. How may Impressions are added by an additional 1

million of expenditure? Add the OLS residuals to your data set. Make a

histogram (experiment with the intervals to avoid a frequency distribution that is

either too smooth or too bumpy or you may just use the histogram produced by

Eviews). What distribution (if any) would be consistent with the histogram?

Compute the OLS coefficients in the relation between the OLS residuals and the

independent variable. Could you have anticipated the result? <Answer key>

                       Assignment 2 (due Wed Sept 21) Gujarati, problem 2.6, 3.10, 3.20, 3.22.
                   Corrections: Problem 3.22 (p.99). After the two equations, the following two lines
                   should be added: If the hypothesis is correct, what value of beta_2 would you
                   expect? (c) Which is a better model against inflation, gold or the stock market? In
                   addition, in #3.20 (p.96), it must be '1992=100,' instead of '1982=100.'<Answer key>

Assignment 3 (due Wed Oct 5) Gujarati, questions 5.1 (except h. and j.), 5.8,

problems 5.9, 5.16 <Answer key>

Assignment 4 (due on Wed Nov 2) Gujarati, question 7.8. 8.9, problems 7.19

(data are <here>) , 8.19, 8.32 (data in assignment 1). <Answer key>

Assigment 5 (due Wed Nov 16) Gujarati, problem 6.19 (data of assignment 1).

Estimate a linear, log-log and linear-log relation. For all 3 use your results to

compute the expenditure elasticity of impressions. Compare them. Question

9.8, problems 9.24 (data <here>), 10.27. <Answer key>

Assignment 6 (due We Nov 30) Gujarati 1.15, a., b., c. (data <here>, and

12.26 a., b., c.(ignore standardized residuals in b.) In c. do also the LM test

(data <here>). <Answer key>

Midterm and final

Sample midterm <here> and answer key <here>. Formula sheet for the midterm

<here>. Please bring a calculator. Here is guide that will help you use Gujarati

<here>.

Answer key midterm <here> and statistics and letter grade <here>

The final is not cumulative. Formula sheet for final <here>. Practice final < here>.

Answer key is <here>.

It is allowed to write on the formula sheet, but you cannot bring additional

copies with remarks, or additional pages with notes.